Hitachi Metals : (Correction) Partial Correction to "Reorganization of Sales System in Japan (Transfer of Business Divisions of Wholly-owned Subsidiary)"

May 27, 2021

To whom it may concern:

Company Name: Hitachi Metals, Ltd.

Name of Representative: Mitsuaki Nishiyama

Chairperson, President, and CEO (Code: 5486; First Section of the Tokyo Stock Exchange)

Contact: Izumi Tsubouchi General Manager, Corporate Communications Dept. (Phone: [phone])

(Correction) Partial Correction to "Announcement of Reorganization of Sales System in Japan (Transfer of Business Divisions of Wholly-owned Subsidiary through Demerger [Simplified Absorption-type Demerger])"

Hitachi Metals, Ltd. makes correction to the " Announcement of Reorganization of Sales System in Japan (Transfer of Business Divisions of Wholly-owned Subsidiary through Demerger [Simplified Absorption-type Demerger])" released on May 26, 2021 due to some errors in the contents. Corrections are shown as underlined.

Correction Details

Part of the correction; II. Sales Division, etc. Absorption-type Demerger

2. Overview of Parties to the Sales Division, etc. Absorption-type Demerger

[Before correction]

2. Overview of Parties to the Sales Division, etc. Absorption-type Demerger

		Demerger company	Successor company
		(Hitachi Metals Trading)	(The Company)
(1)	Name	Hitachi Metals Trading, Ltd.	Hitachi Metals, Ltd.
(2)	Address	2-70, Konan 1-chome,Minato-ku, Tokyo	2-70, Konan 1-chome,Minato-ku, Tokyo
108-8224, Japan	108-8224, Japan
(3)	Name and title of	Takehisa Seo	Mitsuaki Nishiyama
representative	President, CEO	Chairperson, President and CEO
		Marketing of specialty steel products;	Manufacture and marketing of specialty
(4)	Products and	functional components and equipment;	steel products; functional components and
magnetic materials, applications and power	equipment; magnetic materials, applications
businesses
	electronics; and wires, cables and related	and power electronics; and wires, cables and
		products	related products
(5)	Capital	¥350 million (As of March 31, 2021)	¥26,284 million (As of March 31, 2021)
(6)	Establishment	April 1950	April 1956
(7)	Number of outstanding	7,383,200 shares (As of March 31, 2021)	428,904,352 shares (As of March 31, 2021)
shares
(8)	Accounting date	March 31	March 31
(9)	Major shareholders	Hitachi Metals, Ltd. 100%	Hitachi, Ltd. 53.4%
and shareholding ratio	(As of March 31, 2021)	(As of March 31, 2021)

1. Operating performance and financial position of demerger company in most recent fiscal year (fiscal year ended March 31, 2021; Japanese GAAP)

	Net assets	¥18,449 million
	Total assets	¥52,153 million
	Net assets per share	¥2,498
	Net sales	¥112,812 million
	Operating profit	¥2,009 million
	Ordinary profit	¥2,125 million
	Profit	¥1,018 million
	Profit per share	¥137

1. Operating performance and financial position of successor company in most recent fiscal year (fiscal year ended March 31, 2021; consolidated; IFRS)

	Total assets		¥972,249 million
	Total equity		¥492,118 million
	Equity per share attributable to shareholders of		¥1,145.26
	the parent company
	Revenues		¥761,615 million
	Adjusted operating income*		(¥4,977 million)
	Income before income taxes		(¥50,588 million)
	Net income attributable to shareholders of the		(¥42,285 million)
	parent company
	Earnings per share (basic)		(¥98.90)
*Adjusted operating income = Revenues - Cost of sales - Selling, general & administrative expenses

1

[After correction]

2. Overview of Parties to the Sales Division, etc. Absorption-type Demerger

		Demerger company	Successor company
		(Hitachi Metals Trading)	(The Company)
(1)	Name	Hitachi Metals Trading, Ltd.	Hitachi Metals, Ltd.
(2)	Address	2-70, Konan 1-chome,Minato-ku, Tokyo	2-70, Konan 1-chome,Minato-ku, Tokyo
108-8224, Japan	108-8224, Japan
(3)	Name and title of	Takehisa Seo	Mitsuaki Nishiyama
representative	President, CEO	Chairperson, President and CEO
		Marketing of specialty steel products;	Manufacture and marketing of specialty
(4)	Products and	functional components and equipment;	steel products; functional components and
magnetic materials, applications and power	equipment; magnetic materials, applications
businesses
	electronics; and wires, cables and related	and power electronics; and wires, cables and
		products	related products
(5)	Capital	¥350 million (As of March 31, 2021)	¥26,284 million (As of March 31, 2021)
(6)	Establishment	September 1950	April 1956
(7)	Number of outstanding	7,383,200 shares (As of March 31, 2021)	428,904,352 shares (As of March 31, 2021)
shares
(8)	Accounting date	March 31	March 31
(9)	Major shareholders	Hitachi Metals, Ltd. 100%	Hitachi, Ltd. 53.4%
and shareholding ratio	(As of March 31, 2021)	(As of March 31, 2021)

1. Operating performance and financial position of demerger company in most recent fiscal year (fiscal year ended March 31, 2021; Japanese GAAP)

	Net assets	¥18,449 million
	Total assets	¥52,153 million
	Net assets per share	¥2,498
	Net sales	¥112,812 million
	Operating profit	¥2,009 million
	Ordinary profit	¥2,125 million
	Profit	¥1,018 million
	Profit per share	¥137

1. Operating performance and financial position of successor company in most recent fiscal year (fiscal year ended March 31, 2021; consolidated; IFRS)

	Total assets		¥972,249 million
	Total equity		¥492,118 million
	Equity per share attributable to shareholders of		¥1,145.26
	the parent company
	Revenues		¥761,615 million
	Adjusted operating income*		(¥4,977 million)
	Income before income taxes		(¥50,588 million)
	Net income attributable to shareholders of the		(¥42,285 million)
	parent company
	Earnings per share (basic)		(¥98.90)
*Adjusted operating income = Revenues - Cost of sales - Selling, general & administrative expenses

Part of the correction; III. Business Division Absorption-type Demerger from Hitachi Metals Trading to Hitachi Metals Tool Steel and Sale to Dealers

1. Overview of Business Division to be Transferred from Hitachi Metals Trading to Hitachi Metals Tool Steel

(3) Status after the absorption-type demerger"

[Before correction]

Successor company (Hitachi Metals Tool Steel)

①	Name	Hitachi Metals Tool Steel, Ltd.
Address	2-70, Konan 1-chome,Minato-ku, Tokyo 108-8224, Japan
②	Name and title of	Fumihito Kobayashi, Chairperson, President and CEO
③	representative
④	Products and businesses	Sale, thermal treatment and processing of specialty steel, etc.
Share capital	¥100 million (As of March 31, 2021)
⑤	Accounting date	March 31
⑥

2

[After correction]

Successor company (Hitachi Metals Tool Steel)

①	Name	Hitachi Metals Tool Steel, Ltd.
Address	2-70, Konan 1-chome,Minato-ku, Tokyo 108-8224, Japan
②	Name and title of	Fumihito Kobayashi, President, CEO
③	representative
④	Products and businesses	Sale, thermal treatment and processing of specialty steel, etc.
Share capital	¥100 million (As of March 31, 2021)
⑤	Accounting date	March 31
⑥

Ends

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